Title: Spatial agglomeration in a monetary multi-regional growth model with urban residential distribution
Authors: Wei-Bin Zhang
Addresses: Ritsumeikan Asia Pacific University, 1-1 Jumonjibaru, Beppu-Shi, Oita-ken 874-8577, Japan
Abstract: The purpose of this study is to examine a dynamic interdependence between national and interregional growth, money, monetary policy, residential structures, spatial amenity, price of goods, land rent, housing rent in a comprehensive analytical framework. The economy consists of multiple regions and each region has industrial and housing sectors. The model is a synthesis of the four models in the growth theory, urban economics and monetary economics in a multi-regional context. Industrial production and capital accumulation follow the Solow model. Regional population distributes over the urban area according to the Alonso model and regional housing production follows the Muth model. The microeconomic foundation for determining time distribution, savings, spatial location and consumption follows the approach proposed by Zhang. We simulate the model and examine effects of changes in some parameters.
Keywords: monetary policy; regional growth; urban residential structures; cash-in-advance; CIA approach; spatial agglomeration; economic growth; spatial amenities; goods prices; land rents; housing rents; growth theory; urban economics; monetary economics; cities; industrial production; capital accumulation; regional population distribution; regional housing production; microeconomics; time distribution; savings; spatial location; consumption; simulation.
International Journal of Monetary Economics and Finance, 2017 Vol.10 No.1, pp.68 - 95
Received: 24 Mar 2015
Accepted: 26 Oct 2015
Published online: 02 Jan 2017 *